diff --git a/cli/cmds.go b/cli/cmds.go
index b075c1f3..ffc0299b 100644
--- a/cli/cmds.go
+++ b/cli/cmds.go
@@ -11,6 +11,7 @@ import (
 	"os"
 	"path/filepath"
 	"strings"
+	"unicode"
 
 	"github.com/andreyvit/diff"
 	c "github.com/gookit/color"
@@ -397,7 +398,7 @@ func findBlocksInFile(fs afero.Fs, log *logrus.Logger, filename string, verbose,
 		ReadOnly:    true,
 		LineRead:    blocks.ReaderIgnore,
 		BlockWriter: blockWriter,
-		BlockRead: func(br *blocks.Reader, i int, b string) error {
+		BlockRead: func(br *blocks.Reader, i int, b string, r bool) error {
 			if fmtverbs {
 				b = verbs.Escape(b)
 			}
@@ -428,7 +429,7 @@ func diffFile(fs afero.Fs, log *logrus.Logger, filename string, fmtverbs, verbos
 		Log:      log,
 		ReadOnly: true,
 		LineRead: blocks.ReaderPassthrough,
-		BlockRead: func(br *blocks.Reader, i int, b string) error {
+		BlockRead: func(br *blocks.Reader, i int, b string, r bool) error {
 			var fb string
 			var err error
 			if fmtverbs {
@@ -440,6 +441,10 @@ func diffFile(fs afero.Fs, log *logrus.Logger, filename string, fmtverbs, verbos
 				return err
 			}
 
+			if r {
+				fb = reindent(fb, b)
+			}
+
 			if fb == b {
 				return nil
 			}
@@ -495,7 +500,7 @@ func formatFile(fs afero.Fs, log *logrus.Logger, filename string, fmtverbs, fixF
 	br := blocks.Reader{
 		Log:      log,
 		LineRead: blocks.ReaderPassthrough,
-		BlockRead: func(br *blocks.Reader, i int, b string) error {
+		BlockRead: func(br *blocks.Reader, i int, b string, r bool) error {
 			var fb string
 			var err error
 			if fmtverbs {
@@ -507,6 +512,10 @@ func formatFile(fs afero.Fs, log *logrus.Logger, filename string, fmtverbs, fixF
 				return err
 			}
 
+			if r {
+				fb = reindent(fb, b)
+			}
+
 			hasChange := fb != b
 
 			if br.CurrentNodeCursor != nil {
@@ -569,7 +578,7 @@ func upgrade012File(fs afero.Fs, log *logrus.Logger, filename string, fmtverbs,
 	br := blocks.Reader{
 		Log:      log,
 		LineRead: blocks.ReaderPassthrough,
-		BlockRead: func(br *blocks.Reader, i int, b string) error {
+		BlockRead: func(br *blocks.Reader, i int, b string, r bool) error {
 			var fb string
 			var err error
 			if fmtverbs {
@@ -581,6 +590,10 @@ func upgrade012File(fs afero.Fs, log *logrus.Logger, filename string, fmtverbs,
 				return err
 			}
 
+			if r {
+				fb = reindent(fb, b)
+			}
+
 			hasChange := fb != b
 
 			if br.CurrentNodeCursor != nil {
@@ -624,3 +637,19 @@ func upgrade012File(fs afero.Fs, log *logrus.Logger, filename string, fmtverbs,
 
 	return &br, err
 }
+
+func reindent(formatted string, original string) (reindented string) {
+	prefix := ""
+	for _, r := range original {
+		if unicode.IsSpace(r) {
+			if r == '\n' {
+				prefix = ""
+				continue
+			}
+			prefix += string(r)
+		} else {
+			break
+		}
+	}
+	return strings.TrimRight(strings.ReplaceAll(formatted, "\n", "\n"+prefix), prefix)
+}
diff --git a/lib/blocks/blockreader.go b/lib/blocks/blockreader.go
index b4f97cea..7129bd71 100644
--- a/lib/blocks/blockreader.go
+++ b/lib/blocks/blockreader.go
@@ -10,9 +10,11 @@ import (
 	"go/token"
 	"io"
 	"io/ioutil"
+	"path/filepath"
 	"regexp"
 	"strconv"
 	"strings"
+	"unicode"
 
 	"github.com/sirupsen/logrus"
 	"github.com/spf13/afero"
@@ -21,13 +23,55 @@ import (
 
 var lineWithLeadingSpacesMatcher = regexp.MustCompile("^[[:space:]]*(.*\n)$")
 
-type blockReadFunc func(*Reader, int, string) error
+type blockReadFunc func(*Reader, int, string, bool) error
 
 type BlockWriter interface {
 	Write(index, startLine, endLine int, text string)
 	Close() error
 }
 
+type blockFormat interface {
+	isStartingLine(line string) bool
+	isFinishLine(line string) bool
+	keepIndentation() bool
+}
+
+type markdownBlockFormat struct{}
+
+func (markdownBlockFormat) isStartingLine(line string) bool {
+	// nolint:gocritic
+	if strings.HasPrefix(line, "```hcl") { // documentation
+		return true
+	} else if strings.HasPrefix(line, "```terraform") { // documentation
+		return true
+	} else if strings.HasPrefix(line, "```tf") { // documentation
+		return true
+	}
+	return false
+}
+
+func (mbf markdownBlockFormat) isFinishLine(line string) bool {
+	return strings.HasPrefix(line, "```")
+}
+
+func (mbf markdownBlockFormat) keepIndentation() bool {
+	return false
+}
+
+type restructuredTextBlockFormat struct{}
+
+func (restructuredTextBlockFormat) isStartingLine(line string) bool {
+	return strings.HasPrefix(line, ".. code:: terraform")
+}
+
+func (mbf restructuredTextBlockFormat) isFinishLine(line string) bool {
+	return strings.Compare(line, strings.TrimLeftFunc(line, unicode.IsSpace)) == 0
+}
+
+func (mbf restructuredTextBlockFormat) keepIndentation() bool {
+	return true
+}
+
 type Reader struct {
 	FileName string
 
@@ -71,23 +115,6 @@ func ReaderIgnore(br *Reader, number int, line string) error {
 	return nil
 }
 
-func IsStartLine(line string) bool {
-	// nolint:gocritic
-	if strings.HasPrefix(line, "```hcl") { // documentation
-		return true
-	} else if strings.HasPrefix(line, "```terraform") { // documentation
-		return true
-	} else if strings.HasPrefix(line, "```tf") { // documentation
-		return true
-	}
-
-	return false
-}
-
-func IsFinishLine(line string) bool {
-	return strings.HasPrefix(line, "```") // documentation
-}
-
 type blockVisitor struct {
 	br   *Reader
 	fset *token.FileSet
@@ -113,7 +140,7 @@ func (bv blockVisitor) Visit(cursor *astutil.Cursor) bool {
 				bv.br.LineCount = bv.fset.Position(node.End()).Line
 				// This is to deal with some outputs using just LineCount and some using LineCount-BlockCurrentLine
 				bv.br.BlockCurrentLine = bv.fset.Position(node.End()).Line - bv.fset.Position(node.Pos()).Line
-				err := bv.f(bv.br, 0, value)
+				err := bv.f(bv.br, 0, value, false)
 				if err != nil {
 					bv.br.ErrorBlocks++
 					bv.br.Log.Errorf("block %d @ %s:%d failed to process with: %v", bv.br.BlockCount, bv.br.FileName, bv.fset.Position(node.Pos()).Line, err)
@@ -248,6 +275,14 @@ func (br *Reader) doTheThingPatternMatch(fs afero.Fs, filename string, stdin io.
 		}
 	}
 
+	var format blockFormat
+	switch filepath.Ext(filename) {
+	case ".rst":
+		format = restructuredTextBlockFormat{}
+	default:
+		format = markdownBlockFormat{}
+	}
+
 	br.LineCount = 0
 	br.BlockCount = 0
 	s := bufio.NewScanner(br.Reader)
@@ -260,7 +295,7 @@ func (br *Reader) doTheThingPatternMatch(fs afero.Fs, filename string, stdin io.
 			return fmt.Errorf("NB LineRead failed @ %s:%d for %s: %v", br.FileName, br.LineCount, l, err)
 		}
 
-		if IsStartLine(l) {
+		if format.isStartingLine(l) {
 			block := ""
 			br.BlockCurrentLine = 0
 			br.BlockCount += 1
@@ -271,7 +306,7 @@ func (br *Reader) doTheThingPatternMatch(fs afero.Fs, filename string, stdin io.
 				l2 := s.Text() + "\n"
 
 				// make sure we don't run into another block
-				if IsStartLine(l2) {
+				if format.isStartingLine(l2) {
 					// the end of current block must be malformed, so lets pass it through and log an error
 					br.Log.Errorf("block %d @ %s:%d failed to find end of block", br.BlockCount, br.FileName, br.LineCount-br.BlockCurrentLine)
 					if err := ReaderPassthrough(br, br.LineCount, block); err != nil { // is this ok or should we loop with LineRead?
@@ -287,7 +322,7 @@ func (br *Reader) doTheThingPatternMatch(fs afero.Fs, filename string, stdin io.
 					continue
 				}
 
-				if IsFinishLine(l2) {
+				if format.isFinishLine(l2) {
 					if br.FixFinishLines {
 						l2 = lineWithLeadingSpacesMatcher.ReplaceAllString(l2, `$1`)
 					}
@@ -295,7 +330,7 @@ func (br *Reader) doTheThingPatternMatch(fs afero.Fs, filename string, stdin io.
 					br.LinesBlock += br.BlockCurrentLine
 
 					// todo configure this behaviour with switch's
-					if err := br.BlockRead(br, br.LineCount, block); err != nil {
+					if err := br.BlockRead(br, br.LineCount, block, format.keepIndentation()); err != nil {
 						// for now ignore block errors and output unformatted
 						br.ErrorBlocks += 1
 						br.Log.Errorf("block %d @ %s:%d failed to process with: %v", br.BlockCount, br.FileName, br.LineCount-br.BlockCurrentLine, err)
diff --git a/lib/blocks/blockreader_test.go b/lib/blocks/blockreader_test.go
index be69f0ae..92c97915 100644
--- a/lib/blocks/blockreader_test.go
+++ b/lib/blocks/blockreader_test.go
@@ -119,6 +119,17 @@ func TestBlockDetection(t *testing.T) {
     resource "aws_s3_bucket" "leading-space-and-line" {
   bucket = "tf-test-bucket-leading-space-and-line"
 }
+`,
+				},
+			},
+		},
+		{
+			sourcefile: "testdata/test3.rst",
+			expectedBlocks: []block{
+				{text: `  resource "aws_s3_bucket" "terraform" {
+    bucket = "tf-test-bucket-terraform"
+  }
+
 `,
 				},
 			},
@@ -136,7 +147,7 @@ func TestBlockDetection(t *testing.T) {
 			Log:      log,
 			ReadOnly: true,
 			LineRead: ReaderIgnore,
-			BlockRead: func(br *Reader, i int, b string) error {
+			BlockRead: func(br *Reader, i int, b string, r bool) error {
 				actualBlocks = append(actualBlocks, block{
 					leadingPadding:  br.CurrentNodeLeadingPadding,
 					text:            b,
diff --git a/lib/blocks/testdata/test3.rst b/lib/blocks/testdata/test3.rst
new file mode 100644
index 00000000..22431b80
--- /dev/null
+++ b/lib/blocks/testdata/test3.rst
@@ -0,0 +1,10 @@
+# Test 3
+
+Test fenced code block with `terraform`
+
+.. code:: terraform
+  resource "aws_s3_bucket" "terraform" {
+    bucket = "tf-test-bucket-terraform"
+  }
+
+Stuff that is not to be formatted.